Groupon may be the next big thing in the social media revolution
Groupon is a social shopping website that gives users deals on the best things to do, see, and eat in a number of cities across the United States. The website offers one deal each day, however the only way the deal can be unlocked is if enough people join in for it. In order for enough people to join in, Groupon asks that you invite your friends and family to the deal.
Groupon's featured businesses have received tremendous amounts of traffic from being featured on the site because of the way that the deal works. The business model that Groupon uses is almost flawless according to DailyFinance.com: "Groupon takes a whopping 50% cut of the gross sales resulting from each offer." It subtracts out the transaction and processing fees and basically is a "cash machine."
Groupon plans to expand hyper-locally so that soon communities will have their own version of Groupon's daily deal. The specific targeting of local markets will greatly benefit local businesses who could use Groupon for publicity and finding new customers.
The only drawback to Groupon is when deals are not unlocked because too few people signed up for the deal. This may discourage returning customers if they have repeatedly signed up for deals that could not be unlocked.
Folderauer S.
http:/groupon.com/
Groupon may be the next big thing in the social media revolution
Groupon is a social shopping website that gives users deals on the best things to do, see, and eat in a number of cities across the United States. The website offers one deal each day, however the only way the deal can be unlocked is if enough people join in for it. In order for enough people to join in, Groupon asks that you invite your friends and family to the deal.
Groupon's featured businesses have received tremendous amounts of traffic from being featured on the site because of the way that the deal works. The business model that Groupon uses is almost flawless according to DailyFinance.com: "Groupon takes a whopping 50% cut of the gross sales resulting from each offer." It subtracts out the transaction and processing fees and basically is a "cash machine."
Groupon plans to expand hyper-locally so that soon communities will have their own version of Groupon's daily deal. The specific targeting of local markets will greatly benefit local businesses who could use Groupon for publicity and finding new customers.
The only drawback to Groupon is when deals are not unlocked because too few people signed up for the deal. This may discourage returning customers if they have repeatedly signed up for deals that could not be unlocked.
For more information on Groupon, see
http://www.dailyfinance.com/story/groupon-valued-1-35-billion-new-features-explain-why/19465003/